Monday, November 15, 2010

Tax Cuts: A Prediction

Just for fun, I thought I would establish my prediction of the outcome of the current disagreement over tax cuts, to demonstrate how much I do (or don't) know about political strategy.

The agreement will be a temporary continuation, probably for two years, of the Bush tax cuts for everyone.

Why? Because the alternative compromise is a permanent extension for the lower income group, temporary for the high. Do it that way and when the temporary expires, the issue can be presented as whether to give rich people a tax cut--not whether to give everyone one. That's a strong political position for the Democrats, hence one the Republicans will be reluctant to set up.